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. Last Updated: 07/27/2016

Business in Brief

EBRD Invests $2.5M

MOSCOW (Reuters) — The European Bank for Reconstruction and Development will invest a total of $2.5 million in the production of Russian sweets and computer components, the bank said Thursday.

The EBRD said in a statement it would extend about $1 million to the Advakom firm to produce components for computer networks, including data networking cable, fiber-optic products and data racks.

A group of private Swedish investors will provide another $1.3 million, and a further $500,000 will come from Sweden’s state-owned risk capital fund, Swedfund International AB.

Russia’s biggest confectionery plant, Krasny Oktyabr, said it had reached a deal with the EBRD and Dutch Rabo Black Earth BV, which manages an EBRD venture fund, on a $1.5 million investment for new equipment to hike wafer output.

Krasny Oktyabr said in a statement placed on the information site of Russia’s national brokers association, NAUFOR (, that the investment would come in the form of the fund acquiring a stake in the confectionery holding and providing a loan.

Power Export Plans

MOSCOW (MT) — Nuclear power concern Rosenergoatom plans to export electricity to Finland, Turkey and Ukraine, Interfax reported the concern as saying.

By the end of the year it is expected to supply Turkey with 900 million kilowatt-hours of electricity, Rosenergoatom deputy executive director Sergei Yashechkin told a news conference in Moscow on Tuesday. He added that the contract will last five years.

Yashechkin said Rosenergoatom has already sent an offer to the central dispatch department at Unified Energy Systems to use the company’s grid to transport the electricity.

Rosenergoatom also plans to sign a contract to supply electricity from Kola Nuclear Power Plant in northern Russia to Finland. The capacity of the first and second power-producing units at the plant needs to be increased from 400 megawatts to 500 megawatts, he said.

Rosenergoatom also plans to sign a contract to deliver 700 million kilowatt-hours per month to Ukraine.

Yashechkin said this project may begin Aug. 1, the deadline for the synchronization of the Russian and Ukrainian energy systems.

Russian nuclear power plants produced 67.3 billion kilowatt-hours of electricity in the first half of 2001. Growth in electricity production between 1998 and 2000 amounted to 50 billion kilowatt-hours in the country in general, of which 27 billion was produced by nuclear power plants.

Local Xerox Production

MOSCOW (Vedomosti) — Xerox Corp. is getting ready to begin production of laser copiers at the Kvant plant in Zelenograd on the outskirts of Moscow.

Both sides agreed this week to begin assembling copiers with kit technology, gradually streamlining the process.

According to Akhat Karimov, Kvant’s executive manager, the Russian enterprise has the potential to produce between 600,000 and 800,000 copiers annually. It is currently operating at only 15 percent capacity.

In the first half of this year, some 26,000 Xerox personal laser copiers were sold in Russia, while Xerox sales in Russia over that period totaled $52 million.

UES Leads Shares Up

MOSCOW (Reuters) — Top power stock Unified Energy Systems pushed Russia’s benchmark share index to a high close Thursday, but traders said the market was likely to take a breather in the next few days after recent gains.

The RTS closed 1.71 percent higher at 218.08 on a healthy volume of $40.29 million. The broader Reuters Russian Composite gained 1.21 percent to 1436.41.

UES’s ordinaries and preferred shares have been gaining steadily in the last few days as the market awaits Prime Minister Mikhail Kasyanov’s signing of a plan to restructure the company and the power sector as a whole.

UES ordinary shares beat their record for the year, closing up 1.69 percent at $0.1265, although they were off their midday high of $0.1317.

Its preferred shares soared 8.81 percent to a new year high of $0.0840. They had also cooled off by the end of trade from their intra-day high of $0.0900.

"We expect consolidation at current levels. It is a correction inevitable after such a strong rise," a Russian trader said. "But the mid-term prospective is upwards."

Preferred shares in regional utility Kubanelektrosvyaz rose a robust 10.74 percent to $2.99, while Bashkirenergo slipped 1.06 percent to $0.094 after soaring to $0.098 in the middle of the day. LUKoil edged up 0.84 percent to $11.95.

Reserves Pass $35Bln

MOSCOW (Reuters) — Russia’s foreign currency and gold reserves rose 2.6 percent to $35.1 billion in the week ending June 29, the Central Bank said Thursday.

Reserves have risen 25 percent from $28 billion at the beginning of the year.